Your Guide to Finishing 2026 With Financial Confidence

Paul Gougé is a lead consultant in planning excellence at Northwestern Mutual.

Between rising costs, competing priorities, and an uncertain future, it's easy to put financial planning on the back burner. But a year-end financial review can help you better understand where you are today and take small steps to help “future you” feel more confident in the year ahead.

Whether you're building savings, managing competing financial goals, or preparing for a major life event, working with your financial advisor can help you adjust, rebalance, and stay on track. Life is busy, and it can feel like a lot with everything you have going on at the end of the year, but it’s still the right time to take control of your financial future.

Secure your future

As the year comes to an end, reviewing the parts of your financial plan designed to protect you and your family can help ensure you’re prepared for whatever comes next.

Top off your emergency fund

As the year winds down, it’s a good time to refill your “rainy day fund” if you’ve tapped into it during the past year. If you haven’t opened one, start it now. Aim to set aside three to six months of expenses in an account that you can access easily to cover unexpected bills. Also try to have other resources available that can be converted to cash in a short time span with no or minimal risk of loss, tax, or penalties, such as cash or life insurance cash values. Having these funds at the ready can help you cover surprise expenses—such as car repairs or medical expenses—without relying on high-interest credit cards or dipping into long-term savings.

Review your insurance policies 

Maybe you started a new job or got a promotion with a larger paycheck. Or maybe 2026 was the year you had a child. Major life changes are also a good reminder to make sure your financial plan and protection strategy still reflect your current priorities. Depending on your situation, you may want to consider upping your life insurance and disability insurance coverage. And remember to update beneficiaries on existing policies and accounts.

Time for a healthcare checkup

October through December is typically open enrollment for healthcare coverage. Review the current coverage in your health plan and compare it with new plan options to make the best choices for yourself and your family. If you have a health savings account (HSA), you may want to max out annual contributions ($4,400 for an individual on a high-deductible plan and $8,750 for families in 2026). That way, you maximize the triple tax advantages—money goes in tax-free, grows tax-free, and comes out tax-free for qualified healthcare expenses. If you’re at least 55 years old, you can contribute an extra $1,000 to your HSA.

If you have a flexible spending account (FSA), you usually need to spend your contributions by the end of the year. Check your spending deadline because you can only carry over up to $680 into 2027.

Check in on your investments

Market conditions, tax laws, and personal goals can change over time. A year-end investment review can help ensure your portfolio still reflects your risk tolerance, the timeline of your goals, , and your long-term financial plan. Whether retirement is just around the corner or you have a long career ahead, there are a few things to consider every year.

Adjust your portfolio

You’ll want to regularly check that your portfolio’s asset allocation (the mix of stocks, bonds, and other assets) still reflects a level of risk that fits with your goals and investment horizon. If not, consider updates to bring your portfolio back in line with your risk tolerance and goals, known as portfolio rebalancing.

Recognize capital gains or losses

Selling investments at a loss hurts but can also reduce your taxable income for the year. This is called tax-loss harvesting. Depending on your situation, you may also want to sell investments that have appreciated and realize gains. It’s a good idea to work with your financial advisor or tax attorney to think strategically about when it makes the most sense to recognize capital gains or losses.

Top off retirement contributions

Even small increases in contributions can make a meaningful difference over time, especially when paired with a long-term financial plan. Try to raise them every year until you’re contributing the maximum allowed amount to an IRA, 401(k), 403(b), or their Roth counterparts. These accounts offer tax advantages that can help your money go further over time.

Review your budget

Reviewing where your money went this year can help you make more intentional decisions about where it goes in 2027. One option is to download the Northwestern Mutual app for fast, easy and secure access to your accounts and to track your spending in the Cash Flow budgeting tool.

Look over your cash flow

Review your spending this past year and update how you plan to use your money in 2027 and beyond. Tracking your spending is a great way to see where your money is going and can help you prioritize those things that are most important to you. If you don’t have a budget in place, now is the time to create one.

Review rates on outstanding debt

As interest rates fluctuate, it’s smart to review the current interest rate of your outstanding loans, such as mortgages, personal loans and credit cards. Prioritize loans with high interest, and think about refinancing to lower interest rates. You could also consider consolidating your debt so you have only one monthly payment.

Prepare for big events

Maybe next year will bring a wedding, surgery, vacation, new car, or new home. If you’re planning a big-ticket expense, add that into your budget and start setting aside money.

Check your credit

Check your credit score and make sure it’s where you want it to be (typically 740 and higher is considered very good). And request your credit report. You can get a free copy once every 12 months—and you can check your credit report once a week for free—at AnnualCreditReport.com.

Lean on your financial advisor

While a checklist can help you stay organized, it can’t account for the unique goals, opportunities, and challenges that shape your financial life. That's why it's important to step back and look at the bigger picture. Working with your Northwestern Mutual financial advisor can help you connect the many pieces of your financial plan, identify potential blind spots, and make informed decisions that support both your current priorities and long-term goals.

By taking action today, you can head into the new year with greater clarity about where you stand and confidence in where you're headed.

This publication is not intended as legal or tax advice. Financial representatives do not render tax advice. Consult with a tax professional for advice that is specific to your situation.

Frequently Asked Questions

How often should I review my financial plan?

A comprehensive financial plan should be reviewed at least once a year—more often if you’ve experienced a major life event such as getting married, having a child, changing jobs, buying a home, or nearing retirement. Completing a year-end financial review can help you identify opportunities, uncover blind spots, and move into next year with stability and peace of mind.

What are the main components of a financial plan?

A comprehensive financial plan typically includes budgeting and cash flow management, emergency savings, insurance and risk management, investment planning, retirement planning, tax strategies, and estate planning. Together, these components help you balance today's priorities with long-term goals while protecting the financial future you're working to build. At Northwestern Mutual, we think it’s important to keep an eye on both how your money is protected and how it grows.

How can a beginner organize their finances?

Start by understanding how much money you're earning, spending, and saving each month. Build a budget, establish an emergency fund, and pay down high-interest debt. Next, set financial goals, begin contributing to retirement accounts, and make sure you have appropriate insurance coverage. Working with a financial advisor can help you prioritize your next steps and create a personalized plan that grows with you over time.